Domino's Pizza - Strategies to Tackle Global Economic Slowdown

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Case Details:

Case Code : BSTR334
Case Length : 17 Pages
Period : 2007-09
Pub Date : 2009
Teaching Note :Not Available
Organization : Domino's Pizza Inc.
Industry : Food and Beverages
Countries : US

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Background Note

Domino's Pizza originated as a small pizza store owned by Dominick Di Varti at the Michigan University campus in the US under the name 'DomiNick's Pizza'. The pizza store was bought by two brothers who were students at the University, Thomas S. Monaghan (Tom) and James S. Monaghan (James) in 1960...

Domino's Master Franchise Model

Industry analysts believed that Domino's master franchise model was one of the reasons for its success in international markets in light of the global economic slowdown in 2008...

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How Domino's International Bucked the Trend
The strong performance of Domino's international master franchises in the midst of the global economic slowdown was a widely debated topic among analysts. While some analysts believed that the recession had helped the growth of these chains due to the 'trading down factor' of people preferring to eat at home rather than dine out at expensive restaurants, others believed it was a combination of aggressive marketing and the franchise model that had helped the company buck the trend...

Promotional and Advertisement Campaigns
The pizza delivery business had traditionally been promotion driven. Coupons and discounts were offered by all pizza delivery chains to woo customers. Since its inception, Domino's had been known for its unique promotions that included fast delivery and innovations to cater to a varied palette...

The '30 Minutes' Promise
In the year 1973, Domino's began a guarantee scheme that its pizzas would be delivered in 30 minutes or less of ordering failing which the customer would receive the pizza free...

Use of Technology
At DPG, online sales accounted for over 70 percent of its total sales in 2008. DPG planned to further exploit the increasing potential of the online medium as one of the promotional and distributional channels in the downturn, "This is the 10th year we have had an e-commerce platform. We were the first to it back in 1999. We do a number of different activities online to increase sales but there are other things we will be launching this year."...

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